Insights Competition and Markets Authority publishes report on consultation on consumer law compliance by cloud storage providers.

Following the consumer law compliance review, the CMA has published its findings report.  The consultation found that people find cloud storage services really valuable and that the majority of consumers are generally satisfied with their services.

However, some cloud storage providers are using contract terms and practices that the CMA is concerned could breach consumer protection law. This includes terms giving businesses the ability to:

  • change the service or terms of the contract at any time, for any reason and without notice;
  • suspend or terminate the contract without notice for any reason; and
  • automatically renew a contract at the end of a fixed term without giving notice or withdrawal rights.

The report sets out the CMA’s views about what it considers businesses should do to address its concerns and help ensure that their terms and practices are fair.

Following engagement with the CMA during the course of the review, some providers of cloud storage services have already given commitments to provide fairer terms for their cloud storage customers.  The CMA is continuing to engage with a number of other cloud storage providers and will update on this engagement in the coming months.

Alongside the report, the CMA has also published an open letter to businesses and guidance for consumers.  To read the CMA’s press release in full and for links to the report, open letter and consumer guidance, click here.